Boeing misses estimates, profit declines in second quarter

Chicago, July 27, (dpa/GNA) - Aerospace company Boeing on Wednesday reported a profit decline in the second quarter of 67% compared to the previous year, reflecting a 2% dip in revenues on lower defence volumes, partially offset by higher commercial volumes.

However, core loss per share and quarterly revenues came in below analysts’ expectations.

For the second quarter, the Chicago-based aerospace and defence giant reported that net earnings attributable to shareholders plunged to $193 million, or $0.32 per share, from $587 million, or $1 per share in the 2021 quarter.

Core loss for the quarter was $0.37 per share, compared to core earnings of $0.40 per share in last year’s quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $0.16 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues for the quarter declined 2% to $16.68 billion from $17 billion in the same quarter last year, primarily driven by lower defence volume and unfavourable performance, partially offset by higher commercial volume. Analysts expected revenues of $17.55 billion for the quarter.

Total company backlog at quarter-end was $372 billion, including over 4,200 commercial aircraft.

Commercial plane revenues increased 3% year-over-year to $6.2 billion, driven by higher Boeing 737 deliveries, partially offset by lower Boeing 787 deliveries.

Boeing said it has nearly completed the global safe return to service of the 737 MAX model.

During the quarter, commercial planes delivered 121 aircraft, up 53% from last year’s 79 planes. The backlog included over 4,200 planes valued at $297 billion. It also secured orders for 169,737 MAXs, 13 freighters, including seven 777-8 freighters from the German Lufthansa Group.

The Boeing 737 programme has increased the production rate to 31 planes per month during the quarter.

On the Boeing 787 programme, the company continues to work with the FAA to finalize actions to resume deliveries and is readying planes for delivery.

The company still anticipates 787 abnormal costs of approximately $2 billion, with most being incurred by the end of 2023, including $283 million recorded in the quarter.

Meanwhile, defence, space and security revenue decreased 10% to $6.19 billion from $6.88 billion in the previous year.

Global services revenue increased 6% year-over-year to $4.30 billion, primarily driven by higher commercial services volume and a favourable mix.

GNA